Slide 1: Earnings Announcement
Data courtesy of Print my Leg Earnings Announcement FEBRUARY 28, 2023 | Q1 FY23
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operat
Slide 3: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information HP has included non-GAAP financial measures in this presentation to supplement HP’s consolidated financial statements presented on a generally accepted accounting principles (“GAAP”) basis. Definitions of these non-GAAP financial measures and reconciliations of
Slide 4: Q1 FY23 Highlights
Q1 FY23 Highlights • Net revenue of $13.8 billion, down 18.8% from the prior-year period and down 14.7% in constant currency1 • Non-GAAP diluted net earnings per share2 of $0.75, within the previously provided outlook of $0.70 to $0.80 per share • GAAP diluted net earnings per share of $0.49, within
Slide 5: Key Growth Areas
Key Growth Areas1 Collectively grew revenue in Q1 FY23, but macro headwinds posing near-term challenges HYBRID SYSTEMS Double-digit y/y revenue growth driven by Poly; Poly integration on track. Introduced the Poly Voyager Free 60 series of wireless earbuds, specifically designed to create an uncompr
Slide 6: Q1 FY23 Results Overview
Q1 FY23 Results Overview Non-GAAP $ in Net Growth Growth CC1 Non-GAAP Non-GAAP Non-GAAP OP % of rev millions revenue y/y% y/y % OP $3 OP % of rev3 OP $ y/y3 y/y3 Printing $4,612 (4.5)% (2.2)% $870 18.9% $(2) 0.8 pts Personal $9,215 (24.4)% (19.7)% $497 5.4% $(457) (2.4) pts Systems Corporate Investm
Slide 7: Q1 FY23 Mix by Segment and Region
Q1 FY23 Mix by Segment and Region Net revenue Non-GAAP operating profit2 Net revenue By key segment and business unit1 By key segment3 By region Personal Systems Printing Commercial5 Supplies 47% 21% AMERICAS EMEA APJ $1.4 billion 41% 34% 25% Printing Commercial Printing 18.9% US: 34% $13.8 7% 64% o
Slide 8: Revenue & Non-GAAP Diluted Net EPS Performance
Revenue & Non-GAAP Diluted Net EPS Performance Revenue (Billions) y/y growth (%) Non-GAAP diluted net EPS y/y growth (%) $18 $1.20 140% $16.7 $17.0 $1.10 $16.5 35% $1.08 $15.6 $15.9 $1.04 120% $16 27.3% $15.3 $1.00 $14.7 $14.8 $1.00 $0.92 $0.93 $0.94 $13.8 100% $14 25% 104.1% $0.85 80% $12 25.4% $0.
Slide 9: Regional Revenue Trends
Regional Revenue Trends Billions % growth Billions % growth Americas United 40% 40% $7 $7 (including U.S.) 30% States 30% $6 20% $6 20% 10% 10% $5 $5 0% 0% $4 $4 (10)% (10)% $3 (20)% $3 (20)% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Billions % growth
Slide 10: Personal Systems Q1 FY23
Revenue declined y/y driven by continued Personal Systems Q1 FY23 market softness in both Consumer and Commercial, currency and an aggressive pricing environment. Revenue Operating profit Commercial reached 70% of revenue; positive mix shift toward hybrid systems 24% y/y $9.2 $497 and services, bo
Slide 11: Printing Q1 FY23
Printing Q1 FY23 HP+ and Big Tank printers continue to become a larger portion of our portfolio mix, representing 56% of printer shipments in Q1. Revenue Operating profit Revenue declined y/y driven by Supplies and currency. Hardware revenue up marginally, 5% y/y with Office growing double-digit y
Slide 12: Sustainable Impact
Sustainable Impact 1 Climate Action Human Rights Digital Equity HP recently named America’s “Most In 2022, women represented more than 33% In 2022 HP reached 17.1 million people through Responsible Company” by Newsweek for the of full-time executive positions globally, our digital equity programs, n
Slide 13: Select Cash & Debt Balances
Select Cash & Debt Balances $ Billions Net cash (debt)1 $6.0 $3.0 $ Billions 1Q22 2Q22 3Q22 4Q22 1Q23 $0.0 Gross cash2 3.4 4.5 5.4 3.2 1.8 ($3.0) Gross debt 7.1 9.1 11.1 11.2 10.9 ($6.0) Net cash (debt)1,3 (3.7) (4.7) (5.8) (8.0) (9.1) ($9.0) ($12.0) 1Q22 2Q22 3Q22 4Q22 1Q23 Gross cash2 Gross debt 1
Slide 14: Cash Flow & Shareholder Return
Cash Flow & Shareholder Return $ Millions Cash Flow $ Millions Shareholder Return $5,000 $6,000 Share repurchase $4,463 $5,334 Dividend payment $4,000 $3,853 $5,000 $3,000 $4,000 $4,297 $2,000 $1,657 $3,000 $1,404 $2,000 $1,779 $1,000 $0 $1,000 $1,508 $(16) $(16) $359 $359 $(192) $(192) $1,037 $100
Slide 15: Outlook
Outlook Q2 FY23 net EPS guidance GAAP diluted net EPS $0.40 – $0.50 Non-GAAP diluted net EPS1 $0.73 – $0.83 FY23 net EPS guidance GAAP diluted net EPS $2.22 – $2.62 Non-GAAP diluted net EPS2 $3.20 – $3.60 FY23 Free Cash Flow Guidance Free Cash Flow3 $3.0 to $3.5 billion 1. Second quarter of fiscal 2
Slide 16: Non-GAAP Financial Information
Non-GAAP1 Financial Information $ in millions, except per share amounts Q1 FY23 Q4 FY22 Q1 FY22 % of Revenue % of Revenue % of Revenue Revenue $13,828 $14,801 $17,028 Cost of revenue 11,019 79.7% 12,084 81.6% 13,643 80.1% Total OpEx 1,734 12.5% 1,571 10.7% 1,886 11.1% Operating profit $1,075 7.8% $1
Slide 17: Q1 FY23 GAAP to Non-GAAP Bridge
Q1 FY23 GAAP to Non-GAAP Bridge Non-operating $ in millions, except Amortization of Restructuring Acquisition and Debt Tax retirement tax rate and per GAAP intangible and other divestiture extinguishment Non-GAAP adjustments related (credits) share amounts assets charges charges costs / charges Reve
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Slide 19: Supplemental Slides
Supplemental Slides @
Slide 20: Key Growth Areas Definition and Updates
Key Growth Areas Definition and Updates Key Growth Areas represent HP’s businesses which management expects to grow at a rate faster than HP’s core business with accretive margins in the longer term. HP’s Key Growth Areas are comprised of: Hybrid Systems Video conferencing solutions, cameras, headse
Slide 21: Inventory & Accounts Receivable
Inventory & Accounts Receivable INVENTORY ACCOUNTS RECEIVABLE In Billions Percentage of Revenue1 In Billions Percentage of Revenue1 $10 18% $6 16% $9.0 $5.5 $8.9 $5.4 $9 $5.0 $5.2 16% 14% $8.2 $7.9 $8.2 $5 $4.9 $8 $7.5 $7.6 $4.5 $7.3 14% $4.4 $4.3 12% 13.9% $7 13.2% 13.7% 12.6% 12% $4 12.3% 12.5% 12
Slide 22: PP&E & Accounts Payable
PP&E & Accounts Payable PP&E ACCOUNTS PAYABLE In Billions Percentage of Revenue1 In Billions $3 8% $20 $2.8 $2.8 $18.1 $2.6 $2.6 $2.6 $2.5 $2.5 7% $17.0 $2.5 $16.1 $15.2 $15.9 $15.5 $16 $15.3 6% $13.5 $2 5% $12 4.6% 4% 4.2% 4.4% 4.0% 4.0% 4.0% 4.0% 4.0% $8 3% $1 2% $4 1% $0 0% $0 Apr21 Jul21 Oct21 J
Slide 23: Working Capital Metrics
Working Capital Metrics 140 120 100 80 60 40 20 0 (20) (40) Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Days receivables 28 29 30 27 29 27 28 28 Days inventory 54 62 53 59 61 63 57 60 Days payable 110 120 108 119 116 119 114 110 Cash conversion cycle1 (28) (29) (25) (33) (26) (29) (29) (22) 1. C
Slide 24: FY22 GAAP to Non-GAAP Bridge
FY22 GAAP to Non-GAAP Bridge Non-operating Amortization of Restructuring Acquisition and Russia exit Tax retirement $ in millions, except GAAP intangible and other divestiture Non-GAAP charges adjustments related (credits) / tax rate and per assets charges charges share amounts1 charges Revenue $62,
Slide 25: Q4 FY22 GAAP to Non-GAAP Bridge
Q4 FY22 GAAP to Non-GAAP Bridge Non-operating $ in millions, except Amortization of Restructuring Acquisition and Tax retirement tax rate and per GAAP intangible and other divestiture Non-GAAP adjustments related (credits) / share amounts assets charges charges charges Revenue $14,801 $14,801 Cost o
Slide 26: Q3 FY22 GAAP to Non-GAAP Bridge
Q3 FY22 GAAP to Non-GAAP Bridge Non-operating $ in millions, except Amortization of Restructuring Acquisition- Russia exit Tax retirement tax rate and per GAAP intangible and other related Non-GAAP charges adjustments related (credits) / share amounts assets charges charges charges Revenue $14,664 $
Slide 27: Q2 FY22 GAAP to Non-GAAP Bridge
Q2 FY22 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Acquisition- Non-operating Amortization of Tax tax rate and per GAAP and other related retirement related Non-GAAP intangible assets adjustments share amounts charges charges (credits) / charges Revenue $16,490 $16,490 Cost of reven
Slide 28: Q1 FY22 GAAP to Non-GAAP Bridge
Q1 FY22 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Non-operating tax rate and per Amortization of and other Acquisition- retirement related share amounts GAAP intangible assets charges related charges Tax adjustments (credits) / charges Non-GAAP Revenue $17,028 $17,028 Cost of reven
Slide 29: FY21 GAAP to Non-GAAP Bridge
FY21 GAAP to Non-GAAP Bridge Non-operating $ in millions, except Amortization Restructuring Acquisition- Debt Defined benefit Oracle retirement tax rate and per of intangible and other related Extinguishment plan settlement Tax litigation related (credits) / share amounts GAAP assets charges charges
Slide 30: Q4 FY21 GAAP to Non-GAAP Bridge
Q4 FY21 GAAP to Non-GAAP Bridge Defined Benefit Non-operating $ in millions, except Amortization Restructuring Acquisition- plan settlement Oracle retirement tax rate and per of intangible and other related (gains) / Tax litigation related (credits) share amounts GAAP assets charges charges charges
Slide 31: Q3 FY21 GAAP to Non-GAAP Bridge
Q3 FY21 GAAP to Non-GAAP Bridge Non-operating $ in millions, except Amortization Restructuring Acquisition- Debt retirement tax rate and per of intangible and other related extinguishment Tax related (credits) / share amounts GAAP assets charges charges costs adjustments charges Non-GAAP Revenue $15
Slide 32: Q2 FY21 GAAP to Non-GAAP Bridge
Q2 FY21 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Non-operating tax rate and per Amortization of and other Acquisition- retirement related share amounts GAAP intangible assets charges related charges Tax adjustments (credits) / charges Non-GAAP Revenue $15,877 $15,877 Cost of reven
Slide 33: Q1 FY21 GAAP to Non-GAAP Bridge
Q1 FY21 GAAP to Non-GAAP Bridge $ in millions, except Restructuring Non-operating tax rate and per Amortization of and other Acquisition- retirement related share amounts GAAP intangible assets charges related charges Tax adjustments (credits) / charges Non-GAAP Revenue $15,646 $15,646 Cost of reven